Ethereum (ETH) has run into an important trend line resistance at a time when everyone is hoping for the beginning of a new bullish cycle. This trend line has previously seen the price begin a major downtrend after rejection. We can also see on the weekly chart for ETH/USD that this trend line was an important support when it was broken in 2018 and Ethereum then formally entered a bear market. This trend line is what stands between Ethereum (ETH) and the next potential uptrend. However, please be advised that the market makers and the whales would try their best to mislead retail traders near-term. So, until and unless there is follow through, it is not worth the risk reward to be chasing the price here.
The fib time zone on the weekly time frame also spells trouble for ETH/USD because if the price fails to break higher in the days ahead, then it will have to decline much lower to potentially form a new low. There is a very strong probability of ETH/USD declining down to $50 or lower during the next downtrend. If we look at the weekly chart, we can see how the price did the exact same thing as it has done now in 2018 just before the beginning of a brutal downtrend. The big players in this market keep playing these games to trap retail traders and they will continue to do it as long as people fall for them which they always will. We also have an important horizontal resistance around $272. I may have called the top around $277 recently on Tradingview but I would still be very careful because anything could happen near-term.
When the stakes are this high, no fair play is to be expected. We all saw what happened recently with Ripple (XRP). The rest of the market also saw some naked manipulation recently. It is important to realize that regulatory bodies like the SEC will come knocking at some point. It could be anytime now. Most of such events line up based on what is happening on larger financial markets. This is why we will continue to see more hacks and interruptions during bad times, not good times. Ethereum (ETH) has recently spiked up against Bitcoin (BTC) but it has now run into a strong resistance as seen on the ETH/BTC weekly chart.
The market seems primed for a sharp correction. Altcoins are going to be in a lot more trouble compared to Bitcoin (BTC). What happened with IOTA is a good example of what could happen with a lot of the other useless altcoins. The problem here is that 2017 sparked an altcoin FOMO and that was not just for traders or investors. Developers that were looking to launch different projects rushed them most of the time with half baked products because they did not want to miss the buying frenzy. They wanted traders and investors to buy their tokens while everyone was bullish. Same was the case with the Tezos ICO. They had to issue a warning that they don’t know how to recover customers’ funds in case they are lost. The bottom line is, things are going to get worse before they get better. We are a long way from the next bullish cycle just yet.
Ethereum News Today – Headlines for February 22
- Ethereum ProgPow update set to go live on July 2020
- ASIC may pose a threat to the Ethereum network
- The ProgPow hard fork will bring changes to Ethereum
Ethereum News Today – according to reports, the Ethereum ProgPow update has been scheduled to launch in July this year as Ethereum’s core developers conclude preparations to make the digital asset more ASIC resistant. Ether’s core developers have reportedly reached an agreement to implement the ProgPow hard fork following the EIP-1962 upgrades which are scheduled for June 2020.
The EIP-1962 update is set to add some minor features to Ethereum’s cryptographic functions. The network’s core developers have reportedly been promoting this ProgPow hard fork vigorously. This is because are solidly behind the improvements that this initiative brings to Ether. Some developers have expressed concern as there are fears that the hard fork could split the Ethereum community.
The Update is a Cause for Concern for Some
The contentious update has been a cause for concern regarding crypto exchanges running different versions of Ether all comprising of the old and new mining models which can mean a new fork for Ethereum. The exchanges can also increase their fee and the Ethereum community might inevitably split. Now that a consensus has been reached its implementation will be a reality.
James Hancock, Ethereum’s hard fork coordinator, said there wouldn’t be any split in the Ether community because the hard fork is reportedly the ‘read-to-go’. Note that Ethereum split occurred some time ago when DAO (decentralized autonomous organization) split and took about three and a half million ETH tokens. The parties affected were refunded by developers, and dissenters launched Ethereum Classic as tagged the move a developer overreach.
Despite minor dissent to Ethereum’s ProgPow hard fork, the bulk of core developers working on the project have shown support for the update. The discussions brought to the fore fissures in the developer Blockchain, as many influential developers showed their contrarian viewpoints. All in all, the meetings were elaborate.
How Does ASICs Pose a Threat to Ether?
Ethereum has resisted ASIC mining since it began. It was always more favorable for the Ether community to distribute coin via simple computer hardware. This invoked more community participation and even helped to decentralize the efforts of the ETH token. When Bitmain launched its Ethereum ASIC in 2018, it was regarded as an attack on the Ethereum community. Eventually, other manufacturers followed and launched similar products.
Another development was staking which was also in the works and would have rendered any future updates unnecessary. To date, resistance to ASIC has reportedly been successful because developers are keen to keep the platform as transparent as possible.
Ethereum ProgPow update scheduled for July 2020
Ethereum ProgPow update is coming in July 2020 as ETH core developers prep to make the coin more ASIC resistant. Core developers of ETH have reached a consensus to implement ProgPow hardfork after the EIP-1962 update that is scheduled around June. The EIP-1962 update will add minor features to the cryptographic functions of Ethereum.
Core developers have been vigorously promoting the implementation of ProgPow hardfork as they stand behind the improvements it brings to the coin. Some have expressed their displeasure as it could split the community. The contentious update raises concerns about exchanges running different Ethereum versions comprising of both old and new mining algorithms which can essentially mean a new Ethereum fork. The exchanges can increase their fee while the community may split. Now that they have reached a consensus, its implementation will become a reality.
Ethereum ProgPow update is ready-to-go
Ethereum hardfork coordinator, James Hancock, said that there would be no split in the Ethereum community as the hard fork is the ‘read-to-go’. It is worth mentioning that Ethereum split happened some time ago when a ‘decentralized autonomous organization’ (DAO) exploit took around three and a half million ETH. The affected parties were refunded by the developers, and the dissenters set up Ethereum Classic as they saw the move as developer overreach.
Despite the minor dissent to the Ethereum ProgPow update, most of the core developers have stood behind the update. The discussions did bring to fore the fissures in the developer network, as many influential developers expressed their contrarian viewpoints. Still, the meetings were elaborate, and most of the issues were resolved amicably.
How ASICs pose a threat to Ethereum Ethereum has been resisting ASIC mining since its early days. It was always favorable for the Ethereum community to distribute Ether via simple computer hardware. It invoked community participation and helped in the decentralization efforts of the token. When Bitmain Ethereum ASIC was launched in 2018, it was seen as an attack on the community. Other manufacturers followed suit and launched similar products. Staking was also in the works which would have rendered future updates unnecessary. So far, resistance to ASIC has been successful as developers keep the platform more transparent.
A Severe Ethereum (ETH) Correction is Expected by Traders After 125% Rally: Here’s Why
Ethereum (ETH) has front run bitcoin throughout the past 42 days. As the bitcoin price surged by around 50 percent against the USD, ETH recorded a 125 percent rally. The explosive upsurge of ETH may be coming to an end traders warn, if BTC begins to correct.
Ethereum has been a more volatile version of bitcoin during the recent rally
During a bull cycle, major alternative cryptocurrencies (altcoins) tend to precede bitcoin with strong upward momentum.
It took less than two months for Ethereum to recover from around $120 to $280, demonstrating a vertical price movement for the first time since June 2019.
Altcoins tend to outperform bitcoin amidst an ongoing rally, but during consolidation, most altcoins are at the mercy of bitcoin.
In the past two months, for instance, bitcoin has seen an extended rally with minor pullbacks, establishing solid support levels as basis for a stronger upside movement.
In contrast, altcoins like Ethereum spiked up by 80 to 130 percent with little to no pullback, leaving it vulnerable to a steep pullback.
DonAlt, a renowned cryptocurrency trader, said on a livestream that if the bitcoin price begins to pull back to the $7,000s, the altcoin market is highly likely to experience a steep correction.
Ethereum has been one of the best performing cryptocurrencies year-to-date and as such, DonAlt emphasized that the chart of ETH at larger time frames are showing strength compared to other cryptocurrencies.
Still, if the weekly candle of bitcoin closes below a key support level at $9,550, the trader noted that the market could start to correct from its recent upsurge.
The monthly chart of bitcoin also indicates it is vulnerable to seeing an evening star formation, which typically indicates a local top.
Some traders believe ETH is preventing the market from a large crash
Major altcoins including XRP, EOS, and Cardano (ADA) have already shown rejection at larger time frames, especially at a weekly level.
Ethereum is the only top cryptocurrency in the market to have maintained a green weekly candle, two days before close on February 24.
One trader known as Mac said “ETH is currently keeping BTC alive and will probably keep it alive for awhile,” alluding to the fact that Ethereum has provided the cryptocurrency market with momentum in the last two weeks.
The breakdown of ETH followed by a pullback of bitcoin below $9,500 and potentially in the low $9,000 region could spell a local top in the cryptocurrency market for the foreseeable future.
The total capitalization of the cryptocurrency market also showed rejection at $300 billion, struggling to rebound above August 2019 levels.